30. A registered representative (RR) receives a call from a customer asking to have his account statements held during a planned trip throughout the U.S. The RR should tell the customer that:
Answer: A
The customer must provide written instructions that include the time period for holding the account statements.
In order to hold account statements as requested by the customer, it is necessary for the customer to submit written instructions detailing the specific time period during which the statements should be held. This ensures compliance with regulatory requirements and proper documentation.
A) He must provide written instructions that include the time period for holding the account statements.
This option is correct because holding account statements requires formal written instructions from the customer. It provides clarity on the duration for which the statements are to be withheld, ensuring that the RR adheres to compliance protocols.
B) He must give the RR a limited power of attorney so she is authorized to hold his account statements.
This option is incorrect because a limited power of attorney is not necessary for simply holding account statements. Power of attorney is typically used for broader financial decisions and transactions, not for the specific request of holding statements.
C) She will hold the customer's account statements until written instructions are received to resume delivery.
This option is misleading as it implies that the RR can hold the statements without prior written instructions. The RR must have explicit written authorization from the customer before holding the statements, making this approach non-compliant.
D) She is not permitted to hold his account statements but is permitted to have them forwarded to the branch office until he returns from his trip.
This option is incorrect because it misrepresents the RR's capabilities. While the RR cannot hold the statements indefinitely without written instructions, forwarding them to a branch office is not a substitute for the proper procedure of obtaining written consent to hold the statements.
Conclusion
The correct answer is A, as it emphasizes the necessity of written instructions from the customer to authorize the holding of account statements. Other options fail to comply with the regulatory requirements, either misunderstanding the process or introducing unnecessary complications. Thus, understanding the proper protocol for handling account statements is essential for registered representatives.